Accumulative Swing Index or ASI
Accumulative swing index or ASI is a technical indicator developed by Welles Wilder. It was originally designed for futures trading, but is also used for trading stocks and forex currencies. ASI is a simple and easy tool to interpret technical indicator which traders use predominantly as a trend conformation tool.
Accumulative swing index is a better indicator than plain ‘Swing Index’. It gives relatively long-term trend information, and is useful for traders of all styles. The values range from positive to negative integers, which can be plotted on a graph for easy interpretation. ASI shows positive values if long-term trend is up, shows negative values if long-term trend is down, and oscillate around zero for sideways trends.
For easy interpretation, Welder used two terms as High Swing Point (HSP) and Low Swing Point (LSP). HSP is the any trading day with ASI value higher than previous and following trading days. LSP is the any trading day with ASI value lower than previous and following trading day. Trading systems following Accumulative swing index, generate buying signals on upper breakout point – when ASI value go above previous significant HSP, and selling signals on lower breakout point – when ASI value go below previous significant LSP.
Accumulative swing index is a better indicator than plain ‘Swing Index’. It gives relatively long-term trend information, and is useful for traders of all styles. The values range from positive to negative integers, which can be plotted on a graph for easy interpretation. ASI shows positive values if long-term trend is up, shows negative values if long-term trend is down, and oscillate around zero for sideways trends.
For easy interpretation, Welder used two terms as High Swing Point (HSP) and Low Swing Point (LSP). HSP is the any trading day with ASI value higher than previous and following trading days. LSP is the any trading day with ASI value lower than previous and following trading day. Trading systems following Accumulative swing index, generate buying signals on upper breakout point – when ASI value go above previous significant HSP, and selling signals on lower breakout point – when ASI value go below previous significant LSP.
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posted by Daniel Pipitone at
5:50 AM
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